Dow Reverses Course and Adds 8 Points in June

At the end of the year’s first half, the Dow is up 14 percent. After a dismal May, the market recovered 8 percent and 1784 points in June on the news the Fed was considering lower rates and continued domestic economic strength. Also, hope remains a trade deal with China is imminent.

Of course, this is good news for President Trump, who continues to jawbone the Federal Reserve Chair, Jerome Powell, for a quick rate cut.

The Dow actually lagged technology, NASDAQ, which is up 21 percent year-to-date, and continues to drive the market, even with considerable volatility and concerns about trade wars and anti-trust actions. The broader market index: the SP 500 is up 17 percent. A nice return, given all the uncertainty related to volatile oil markets and commodity prices, trade wars and slowdowns in Europe and China.

Trump loves the show of foreign visits and knows the risk of foreign adventures. Vietnam wrecked the Johnson presidency and Iraq crushed Bush II. So, Trump mostly focuses on what he knows best – making money. It is also most likely to be essential to getting a second term.

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